http://m.economictimes.com/markets/real-estate/realty-trends/young-buyers-investing-in-property-to-save-tax/articleshow/13007445.cms
REALTY TRENDS
After working for four years, Ramkumar Mahadevan, a professional with the financial
industry invested in a house. He was 26 years old, when he bought his 2BHK in a premium locality at Kharghar. The gap between the salary levels of working professionals in India and the more developed countries has narrowed in recent years resulting in young Indians being able to afford a house very early in their career.
The reducing average age of home-buyers is reflective of growing financial independence of resurgent India. Manoj John,VP - Corporate Planning & Strategy at RNA Corp says, "The income levels of population in the age bracket of 25 to 35 has multiplied five times in the last 10 years, and the relaxation of home loan lending norms by private and state-owned financial institutions has assisted this transition. Real estate is also seen as an attractive investment option due to the steady value appreciation demonstrated in last decade, which when combined with increasing need for housing in nuclear families become a compelling decision."
Endorsing this view, Mahadevan says,"An employee with high paying sectors like IT, Finance, etc. is able to save enough to cover the down payment for a house in four years into their career."
The youth today are more informed and are smart enough to prioritize things in their life. Buying a house requires some sacrifices to be made and a delay can prove to be costly. Many youngsters believe that once settled in a job, the next step should be to invest in a property and splurging on luxuries can follow.
"These days, generally inflation is higher than the rate of interest on fixed deposits. That doesn't make FD a viable investment option and stock markets don't promise assured returns. So, property remains the best bet as you can also save a bit of tax on the interest paid," says 32-year-old Ameya Dalvi, a media professional who has bought a 2BHK at CBD Belapur.
Sharing similar sentiments is 25-year-old Saurabh Dass, an IT professional, currently working in the USA. He has invested in a 2BHK property that is currently under construction in Dombivli. "With the volatility in the current market, real estate is the most lucrative options for investing my savings. The savings accounts in USA provide interest rates of less than 1%, which isn't comparable to the returns on realty in India. For a person like me working in USA and planning to settle in India, this makes sense as the exchange rates are at an all time high," says Dass.
Search for the perfect house that fits all or most requirements takes at least three months and could even take upto two years. The reason, nine out of 10 times, is typically budget constraints as sky is the limit for one's wishes. There is also an emotional factor when buying the first house and it takes time to make the big decision.
Arun Gupta
